China's Consumer Price Index (CPI) rose 0.5% in January, exceeding market expectations. The Producer Price Index (PPI) declined 2.3%, surpassing the anticipated fall. This data triggered a 0.43% drop in the AUD/USD pair.
China’sConsumer Price Index rose at an annual pace of 0.5% in January after reporting a 0.1% growth in December. The market consensus was for a 0.4% increase in the reported period. Chinese CPI inflation came in at 0.7% MoM in January versus December’s 0%, softer than the 0.8%estimate. China’s ProducerPrice Index declined 2.3% YoY in January, following a 2.3% fall in December. The data came in below the marketconsensus of -2.1%.
The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. How does the health of the Chinese Economy impact the Australian Dollar? China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar .
CHINA INFLATION CPI PPI AUD/USD MARKET REACTION
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